Oregon Dept of Revenue Forestland Valuation

https://secure.sos.state.or.us/oard/viewSingleRule.action?ruleVrsnRsn=21392

Forestland Valuation Descutes County 2017-18 SAL2a

https://weblink.deschutes.org/public/0/doc/90591/Page1.aspx

2017-18 Specially Assessed Forestland Values - Oregon.gov

http://www.oregon.gov/DOR/programs/property/Documents/specially-assessed-forestland-values.pdf

May 9, 2017
To Whom It May Concern:

ORS 321.216 requires that the Department of Revenue certify the specially assessed values of forestland to the counties on or before June 1 of each year. I, therefore, certify that the enclosed schedule contains the 2017-2018 per acre values of forestland in your county.

•   These certified specially assessed values constitute the department’s determination of the real market value, as of the assessment date for the tax year, of highest and best use forestland.
  
•   These certified specially assessed values constitute the specially assessed values, as of the assessment date for the tax year, of designated forestland that is assessed under either ORS 321.354 in the land class for which the certification is being made for western Oregon or ORS 321.833 (formerly 321.812) for eastern Oregon.
  
•   The 2017-2018 Maximum Specially Assessed Value (MSAV) was calculated using a three percent increase over last year’s Assessed Value (AV) and is included in the table for your benefit.
  
•   The 20% Specially Assessed Value (SAV) is for use on forestland that is assessed under 321.700 to 321.754 (Small Tract Forestland Option).
  
•   The 20% MSAV value for the tax year beginning July 1, 2017 was calculated using a three percent increase over last year’s 20% AV and is included in the table for your benefit.
  The values in this certification are calculated based on the procedures set out by ORS 321.207 to 321.213 and OAR 150-321-0200.
  Jason Brockie, Manager Special Programs Unit Property Tax Division
  Enclosure: Oregon Forestland Values for 2017 – 2018 150-800-930 (Rev. 03-15)
  

Department of Revenue Property Tax Division 955 Center St NE PO Box 14380 Salem, OR 97309-5075 www.oregon.gov/dor/timber

OREGON FORESTLAND VALUES

WESTERN OREGON

EASTERN OREGON

FOR
JULY 1, 2017 – JUNE 30, 2018

	Forestland Program		Small Tract Forestland Program
Forestland Class	MSA V	SAV	20% MSAV	20% SAV
FA	$ 680.60	$1,060.82	$ 135.02	$ 212.16
FB	$ 539.93	$ 840.07	$ 107.15	$ 168.01
FC	$ 452.19	$ 705.17	$ 89.50	$ 141.03
FD	$ 384.12	$ 600.92	$ 76.29	$ 120.18
FE	$ 255.55	$ 398.57	$ 49.87	$ 79.71
FF	$ 184.45	$ 288.19	$ 36.63	$ 57.63
FG	$ 77.07	$ 122.63	$ 14.59	$ 24.52
FX	$ 9.01	$ 12.26	$ 1.40	$ 2.45

	Forestland Program		Small Tract Forestland Program
Forestland Class	MSA V	SAV	20% MSAV	20% SAV
Eastern Oregon	$ 77.07	$ 140.00	$ 14.59	$ 28.00

MSAV SAV
20% MSAV
20% SAV

– Maximum Specially Assessed Value (Measure 50)
– Specially Assessed Value (ORS 321.207)
– 20% Maximum Specially Assessed Value for qualified Small Tract Forestland Program properties (Measure 50)
– 20% Specially Assessed Value for qualified Small Tract Forestland Program properties (ORS 321.722)

Page 2 of 2

Real Market Value - Wow!

http://www.latimes.com/local/california/la-me-lopez-silicon-equity-20171118-story.html

https://www.nakedcapitalism.com/2017/11/links-111917.html#comment-2888887

Investing In Infill Is A Better Effort Than More SDCs?

https://www.bendsource.com/bend/investing-in-infill-is-a-better-effort-than-more-sdcs/Content?oid=4475337

This editorial presents a spurious argument in support of its title:  Investing in Infill is a Better Effort Than More SDCs.

The first paragraph is a fact.

The second paragraph proposes another approach: ..... "...to bring in money without raising SDCs ---and relatively quickly.......dense, mixed-use developments bring a far higher rate of return per acre than single-use developments, whether those are large shopping centers or single-family homes. "...to bring in money without raising SDCs ---and relatively quickly.

Fact:  SDCs are city fees paid to the City for new start up one time requirements.
Fact:  Deschutes County property taxes go to the county. Some amount of county tax paid by City residents returns to Bend to support the City Budget.  Tax payers in Bend can see on their county tax statement how much returns to the City of Bend.  I paid county tax yesterday on my property.  Total tax:  $4,575.22.  The City of Bend got $818.06.  That amount goes to the City Budget for annual maintenance of city services. 

The other approach to "bring in money" (to the City as a result of mixed use developments) can only be through Deschutes County Property Tax that is claimed to bring a far higher rate of return per acre than single use development.  This is where the apples of SDCs to the City get mixed up with the oranges of Deschutes County taxes.

The way it gets mixed up is framed by reference to a study

"According to an article by architect Joseph Minizozzi, AICP, the city of Asheville, N.C. realizes an 800 percent greater return on downtown mixed-use development projects compared to single-use development—to the tune of $360,000 more in tax revenue per acre going toward city government. This is not an anomaly....."Are cities across the country acting negligently in ignoring the property tax implications of different development types? Joseph Minicozzi thinks so, and he's done the math to prove it."

Works for Asheville.  How does that work in Bend?  Look at rwo Box Stores

Bend Walmart Property: https://dial.deschutes.org/Real/Index/192590
Interactive Map Property View:  https://dial.deschutes.org/Real/InteractiveMap/192590
Real Market Value:
          Land:                           $0.00
Assessor Acres:                      0.00 Acres
    Structure:           $18,323,580.00
           Total:           $18,323,580.00
Assessed Value:     $11,164,700.00
2017-18 Tax:              $173,238.17
Problem here:  No acreage amount to put into a tax per acre computation!  The Deschutes County Assessor does not assess the value of the taxlot acreage land that the Walmart store is on.  I don't know why but there must be a reason.  Everybody knows that tax to be fair must stand to reason?

Pick another Box Store:  This one has an amount of Assessor Acres.
Bend Fred Myer Property: https://dial.deschutes.org/Real/Index/177087
Interactive Map Property View:  https://dial.deschutes.org/Real/InteractiveMap/177087
Real Market Value:
                   Land:    $11,931,935.00
   Assessor Acres:                   19.16 Acres
             Structure:    $17,620,070.00
                   Total:    $29,552,005.00
 Assessed Value:      $22,119,710.00
2017-18 Tax:                $343,222.70

Tax paid Deschutes County per acre of taxlot land occupied by Fred Meyer:  $17,913.50 
County tax portion of total tax $343,222 to the City of Bend: $61,368.00

My Deschutes county tax residential home in the West Hills https://dial.deschutes.org/Real/Index/101757  Overhead View:  https://dial.deschutes.org/Real/InteractiveMap/101757
Total tax 2017-18: $4,575.00
Tax per acre: $19,062.00 (.24 acres)
Portion of total county tax going to the City of Bend:   $818.00

Some Observations:

Walmart has no Assessor Acreage and pays far less ($173,238) than Fred Meyer ($343,222) in county tax.  The two Box Stores seem comparable.

Fred Meyer county tax expressed  on an per acre basis is $17,913.50
My property county property tax expressed on a per acre basis: $19,062.00
On a per acre basis they are both close.

County tax portion to the City of Bend on a per acre basis:
Fred Myer portion computed per acre : $3,203.00
My portion computed per acre: $3,408.00

How does a downtown property compare?

Bend Hardware Building (mixed use)  https://dial.deschutes.org/Real/Index/104516
Real Market Value
   Land:          $1,997,900.00
   Structure:   $1,104,230.00
          Total:  $$3,405,130.00
Assessed Value: $765,660.00
Total Tax 2017-18:  $11,880.44
Tax per acre computation (.24 acres) $49,502.00
County tax portion to the City of Bend:  $2,124.00
Tax portion to the City of Bend on a per acre computation:  $8,850.00

My residential property tax contributes about as much on on a per acre computation basis as Fred myer.

A sample mixed use, middle of downtown property, built in 1911 contributes 2.5 times more in county property tax than the Fred Myer Box store.

In terms of tax per acre computed portion to the City of Bend the Hardware Building contributes
a computed $8,848 per acre (.24 acre)

Box Store Fred Myer per acre couputed portion to the City of Bend contributes a computed
$3,203.00 per acre (19.16 acres)

Downtown mixed use contributes about 2.75 times more to the City of Bend Portion of Deschutes County taxes.

In my opinion the conclusion of the editorial is to "Infill" develop more properties on small acreage mixed use in a core commercial/residential area that (once structures are built on developed land) they will provide a future annual stream of increased Deshutes County tax revenue to the City of Bend greater than if they were built on the periphery of Bend.   That will pay for the lower incremental cost to the City to build infrastructure in an Infill area as well as the greater infrastructure costs related to development at the periphery instead of SDCs

           

Private Forestland and Public Interest

This blog about Forestland needs to be more focused in exactly what Forestland is being examined.

The focus: Private Forestland.  All Forestland in the state is in one of two categories:

Public Owned.

Private Owned.

In the bigger picture Oregon Forestland, Public and Private, covers a large part of the state. A larger part of Western Oregon than Eastern Oregon.  This is a forest ownership map:

http://oregonforests.org/content/forest-ownership-interactive-map
Flipping between the various owners, especially between public and large and small private owners displays concentrations of both categories.  The area of my interest is Deschutes County which is not exactly identified but is approximated. 

This chart (2015) displays the harvest of timber from public and private forestland:
 http://oregonforests.org/node/24

This map displays Oregon forest by type of tree:

http://oregonforests.org/node/86

The prior three links are at Oregon Forest Research Institute.  A non-government .org website that is funded by   ??  A generous public that contributes money to support our forestland?  A better question is who benefits the most from this generous support.  ORFI would say everyone.  The public environmentally.  Private interests financially.  The whole world is either public or private.  OFRI is a single source described entity at Wikipedia as an educational organization.  It obviously mixes public and private benefit.  The linked information it presents is a general benefit. 

OFRI presents this information for Deschutes County:

 Mostly harvested from public land.  Some from large private: 5,507 board feet (large defined as ? more than 5,000 acres?).  Not much from small private: 9,000 board feet.  The first 25,000 board feet of annual harvest is not taxed? Depends on Designated Forestland or Small Tract Forestland?  Different tax.

What amount of state tax is derived from this harvest?

It looks like the amount of state tax is insignificant.  The purpose of the tax therefore is not the revenue derived from the taxation but the social and economic benefit to the public.  What is the social and economic benefit value?  Who benefits?  Socially the benefit to the public is the preservation of forestland that is not cut and not cutting it gives various environmental benefits from clean air to recreation.   Economic benefit is derived to 2,741 forest sector jobs being 4.6% of county employment in Deschutes County.  Population was 175,258 in 2015.  About 70,000 county residents are employed.

There is a factual basis to conclude that it takes a certain minimum amount of Forestland needed to derive any economic or social benefit or any significant relative degree of economic or social benefit.  At the macro level according to the Dept of Forestry:
"Oregon's forests cover more than 30 million of the state's 63 million-acre land base, or about 48 percent of the state's total landmass. About 60 percent of all forestlands in Oregon are owned by the federal government.

Oregon Department of Revenue Timber Tax

http://www.oregon.gov/DOR/programs/property/Pages/timber.aspx